Mr. J. M. Macdonnell (Greenwood):

I should like to ask a question of the Minister of Defence Production. Can the minister advise the house whether any further progress has been made in increasing Canadian purchases from the United Kingdom as a means of giving them greater purchasing power with which to buy from us and, in particular, has it been found possible to increase purchases of defence materials from the United Kingdom?

Right Hon. C. D. Howe (Minister of Defence Production):

Mr. Speaker, speaking for the Department of Trade and Commerce, every encouragement has been given to provide purchasers in the United Kingdom with dollars. The sterling trade committee has been active in promoting purchases in the United Kingdom, and I think some success is following their efforts.

So far as the Department of Defence Production is concerned, orders were placed in the United Kingdom last year, that is in the fiscal year 1951-52, to the order of about $45 million, and the results of the last three months indicate that the orders placed in the United Kingdom will be considerably higher in the fiscal year 1952-53.

I might point out, however, that purchasing in the United Kingdom depends a great deal upon availability, and to date we have found it rather difficult to obtain there the materials, equipment and machinery that we need for defence production.

Mr. Coldwell:

May I ask a supplementary question. Has any consideration been given to a proposal of this description, that payments on the $1,200 million loan be deferred, without interest, and the amount due Canada this year, we will say-last year I think it was $26 million-made available to the British to purchase in Canada such things as agricultural products, fish and so on.

Hon. Douglas Abbott (Minister of Finance):

That matter has not been considered. The next payment on the United Kingdom-Canada loan will fall due in December, and there are certain provisions in the loan agreement, similar to the provisions in the United States loan, which provide for a waiver of the interest payment under certain conditions.

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Inquiries of the Ministry

Mr. Coldwell:

The government will consider that when the time comes?

Mr. Abbott:

Those matters are always kept under consideration.

Mr. Macdonnell (Greenwood):

May I ask a

supplementary question of the Minister of Finance with respect to the answer he has already given. What was the position with regard to the interest payment last year?

Mr. Abbott:

The conditions of the loan were adhered to both so far as the United States is concerned and Canada, and the interest and capital payments were made on the due date.

Mr. J. G. Diefenbaker (Lake Centre):

should like to direct a question to the Minister of Justice in connection with a news report of Canadian Press relative to the alleged-charges having been laid against someone in Montreal, arising out of consorting with Russian agents. Although there was a great deal in the press report, the charge was not made clear. Is the minister in a position to say anything about the matter?

Hon. Stuart S. Garson (Minister of Justice):

We have not been in a position to make a press statement on this matter until this morning. Just before I came into the chamber, I sent the following press statement up to the press gallery:

Rudolf Shohan, also known as Raymond Arthur Davies of Montreal, was arrested on the morning of Saturday, June 28. He was charged under section 405A of the Criminal Code with having made an untrue or misleading statement in writing for the purpose of obtaining a Canadian passport.

He is being escorted to Ottawa by the R.C.M. Police and will appear in magistrate's court there probably on Monday, June 30.

Mr. Howard C. Green (Vancouver-Quadra):

I wish to direct a question to the Minister of Defence Production. Would it be possible to get a return to an order passed on June 23, in connection with a question I asked concerning the officers on loan from business and industry to the Department of Defence Production? I am hoping that this return can be brought down before the house adjourns next week.